The Sudden Rise of Propanc Biopharma Inc (OTCMKTS:PPCB)

Propanc Biopharma Inc (OTCMKTS:PPCB) is a micro-cap player in the biotech and healthcare space that recently exploded off its proximal lows, and pivoted to the upside, launching over 600% in a matter of days. The catalyst for the move? It begins and ends with the company’s recent announcement that it has made significant recent progress towards full-scale Good Manufacturing Process (GMP) manufacture of its lead product, PRP, for First-In-Human studies, expected to commence in 2018.

According to the company’s release, “research and development activities conducted with its European Contract Manufacturing Organization (CMO) experienced in the production of biopharmaceuticals, have been successful in developing a process capable of purifying and stabilizing the two active drug substances of the PRP formulation, trypsinogen and chymotrypsinogen, which is an important requirement during the manufacturing process. As a result, the Company is set to commence engineering runs of manufacturing the finished drug product, prior to full-scale GMP manufacture of PRP for human trials. PRP is a solution for once-daily intravenous administration of a combination of two pancreatic proenzymes trypsinogen and chymotrypsinogen.”

Propanc Biopharma Inc (OTCMKTS:PPCB) bills itself as a development stage healthcare company, focuses on the development of cancer treatments for patients with pancreatic, ovarian, and colorectal cancer in Australia.

The company’s lead product includes PRP, a patented formulation consisting of two pro-enzymes, such as trypsinogen and chymotrypsinogen, as well as the enzyme amylase designed to synergistically enhance anti-cancer effects. It is also developing a combination of anti-cancer agents working in combination with pro-enzymes, which enhance PRP’s anti-cancer effects.

The company was formerly known as Propanc Health Group Corporation and changed its name to Propanc Biopharma, Inc. in April 2017. Propanc Biopharma, Inc. was founded in 2007 and is based in Camberwell, Australia.

According to company materials, “Propanc Biopharma is a clinical stage biopharmaceutical company developing new cancer treatments initially for patients suffering from pancreatic, ovarian and colorectal cancers. We have developed a formulation of anti-cancer compounds, which exert a number of effects designed to control or prevent tumors from recurring and spreading throughout the body. Our products involve or employ pancreatic proenzymes, which are inactive precursors of enzymes. In the near term, we intend to target patients with limited remaining therapeutic options for the treatment of solid tumors. In future, we intend to develop our lead product to treat (i) early stage cancer and (ii) pre-cancerous diseases and (iii) as a preventative measure for patients at risk of developing cancer-based on genetic screening.”

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As noted above, this is a recent momentum favorite, being driven by the company’s recent announcement that it has been successful in developing a process capable of purifying and stabilizing the two active drug substances of its PRP formulation.

“We are delighted with the excellent progress made with our CMO in progressing PRP to its current stage of development and we are excited about our plans to move into First-In-Human studies next year,” said Dr Julian Kenyon, Propanc Biopharma’s Chief Scientific Officer. “Purifying and stabilizing each active drug substance of PRP has been technically challenging. This is due to the nature of the proenzymes which are able to auto-activate themselves, which is not unexpected for biological molecules of this nature. The work conducted by our research and development team to meet this challenge has been first class and we look forward to progressing PRP through to clinical development.”

The chart shows 480% added to share values of the listing over the past month of action, but this action is running counter to the larger trend in the name. Market participants may want to pay attention to this stock. PPCB has a history of dramatic rallies. What’s more, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed nearly 380% over what the stock has registered over the longer term.

Traders should note this as important due to the tiny float size in the stock (of 6.5M shares). It’s something the veterans know to key on: a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.

Now commanding a market cap of $7.6M, PPCB has a store ($143K) of cash on the books, which stands against about $4.7M in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $PPCB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $PPCB, either long or short, and we have not been compensated for this article.